version 7.0log using ECSA.log, replace#delimit ;*     ***************************************************************** *;*     ***************************************************************** *;*   File-Name:  ECSA.do                                                 *;*   Date:       October 24, 2001                                        *;*   Author:     MRG                                                     *;*   Purpose:    Read eup dataset: Basic Model                          *;*   Input File: eup.dta                                                *;*   Output File:ECSA.log                                                *;*   Data Output:                                                        *;*   Previous file:                                                      *;*   Machine:    system11                                                *;*     ****************************************************************  *;*     ****************************************************************  *;set mem 10m;use h:\ECSA\EUP\dofiles\eup.dta;*     ****************************************************************  *;*     Rename some of the variables to coincide more clearly with paper  *;*     ****************************************************************  *;rename bbdrlmag logmag_leftbbd ;rename bbdrstfm  strongfm_leftbbd;rename bbdrtarg targets_leftbbd;rename ddebt1 lagdebt;rename dbtserv2 debtcosts;rename growth gdp;rename pol1 govtype1;rename pol2 govtype2;rename pol3 govtype3;rename partbbd2 leftbbd;rename wkbpart leftwkb;generate logmag_leftwkb = logmag*leftwkb;generate strongfm_leftwkb = strongfm*leftwkb;generate targets_leftwkb = targets*leftwkb;*     ****************************************************************  *;*                 Now run basic model: Using BBD for left               *;*                     Equivalent to Model I B in paper                  *;*     ****************************************************************  *;xtpcse  ddebt leftbbd logmag strongfm targets logmag_leftbbd         strongfm_leftbbd targets_leftbbd lagdebt unemp  gdp debtcosts         govtype1 govtype2 govtype3 austria belgium denmark finland         nether spain sweden france germany greece italy          if year>1980 & year<1993,p ;        *     ****************************************************************  *;*                 Now drop strongfm_leftbbd and targets_leftbbd         *;*                     Equivalent to Model II B in paper                 *;*     ****************************************************************  *;xtpcse  ddebt leftbbd logmag strongfm targets logmag_leftbbd         lagdebt unemp  gdp debtcosts govtype1 govtype2 govtype3 austria         belgium denmark finland nether spain sweden france         germany greece italy if year>1980 & year<1993,p ;        *     ****************************************************************  *;*                 Now drop all interaction terms                        *;*               Equivalent to Model III B in paper                      *;*     ****************************************************************  *;xtpcse  ddebt leftbbd logmag strongfm targets lagdebt unemp  gdp         debtcosts govtype1 govtype2 govtype3 austria belgium denmark finland         nether spain sweden france germany greece  italy          if year>1980 & year<1993,p ;*     ****************************************************************  *;*                 Now run basic model: Using WKB for left               *;*                     Equivalent to Model I A in paper                  *;*     ****************************************************************  *;xtpcse  ddebt leftwkb logmag strongfm targets logmag_leftwkb         strongfm_leftwkb targets_leftwkb lagdebt unemp  gdp debtcosts         govtype1 govtype2 govtype3 austria belgium denmark finland         nether  spain sweden france germany greece ireland italy         lux if year>1980 & year<1993,p ;*     ****************************************************************  *;*                 Now drop strongfm_leftwkb and targets_leftwkb         *;*                     Equivalent to Model II A in paper                 *;*     ****************************************************************  *;xtpcse  ddebt leftwkb logmag strongfm targets logmag_leftwkb         lagdebt unemp  gdp debtcosts govtype1 govtype2 govtype3 austria         belgium denmark finland nether  spain sweden france         germany greece ireland italy lux if year>1980 & year<1993,p ;        *     ****************************************************************  *;*                 Now drop all interaction terms                        *;*               Equivalent to Model III A in paper                      *;*     ****************************************************************  *;xtpcse  ddebt leftwkb logmag strongfm targets lagdebt unemp  gdp         debtcosts govtype1 govtype2 govtype3 austria belgium denmark finland         nether  spain sweden france germany greece ireland italy         lux if year>1980 & year<1993,p ;        *     ****************************************************************  *;*            All results in the paper have now been replicated          *;*     ****************************************************************  *;                      save    ECSA, replace;exit;